YASHITA FINANCE PVT. LTD.,NEW DELHI vs. CIT(A), NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2016-17, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2025-26/1078279089(1) dated 08.07.2025, in proceedings u/s 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Coming straightway to the assessee’s sole substantive ground raised herein, it emerges during the course of hearing that both the learned lower authorities have levied the impugned penalty u/s 271(1)(c) of the Act amounting to Rs.5,76,947/- which pertains to various disallowance u/s 14A, legal and professional expenditure, interest on refunds u/s Yashita Finance Pvt. Ltd.
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244A and difference in interest income etc. involving varying sums, respectively.
The above being the clinching factual position, the Revenue could hardly dispute that their lordships landmark decision in CIT vs. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC) has already settled the issue that quantum and penalty proceedings are parallel in nature wherein each and every instance of such a disallowance does not ipso facto the latter penal provision. The impugned penalty is directed to be deleted in very terms therefore.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 30/10/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 30/10/2025
*Subodh Kumar, Sr. PS*